When it comes to technology solutions asset managers are looking for simplicity of platform, risk management and compliance capabilities, according to SunGard.

The lines between institutional asset managers and alternative investors are blurring, said the firm’s president, Martin Boyd, as investment strategies and priorities in the two markets are coming together.

SunGard identified ten trends which, in its view, are sweeping the asset management industry:

·        Investor demand for business continuity plans for hedge funds is rising;

·        Automated processes and simplified workflows are becoming key for hedge funds, helping them to reduce risk around due diligence and meet reporting requirements;

·        Complex products will need more transparency and frequent valuations, such as the central clearing parties provide for standardized over-the-counter securities;

·        Asset managers will need more analytic tools that help them find alpha, correlations and create visualization on large data sets;

·        China is becoming a focus for investment in traditionally riskier, alternative investment funds;

·        Mid-sized asset managers will feel the squeeze from cost pressures, as their larger rivals benefit from economies of scale while they simultaneously have to provide greater transparency and reliability of returns to investors;

·        The new form PF annual reporting mandates for investment managers in the US mean fund managers will need greater detail on individual investments;

·        Asset managers will need to establish an online tax book with the flexibility to prepare accounting data for tax assessments in numerous countries, due to FATCA requirements;

·        The eurozone crisis will move East, SunGard believes, prompting Asian fund managers to find scenario analysis techniques to mitigate market risk.

“A key element of effective risk management is to have a holistic view of information before investment decisions are executed,” said Dushyant Shahrawat, senior research director, CEB TowerGroup.

“The ability to focus on core competencies and new delivery models that increase efficiency and lower total cost of ownership will differentiate fund managers from their competitors and help grow assets under management,” he added.